EXHIBIT
10.1
LOJACK
CORPORATION
CASH
INCENTIVE PLAN
LoJack
Corporation, a Massachusetts corporation (the
“Company”), has established the LoJack Corporation Cash
Incentive Plan (the “Plan”).
The purpose
of this Plan is to advance the interests of the Company by
providing a means to pay performance-based short-term and long-term
incentive cash compensation to those employees upon whose judgment
and efforts the Company is largely dependent for the successful
conduct of its operations. It is anticipated that the
opportunity to earn such cash compensation will stimulate the
efforts of such employees on behalf of the Company, strengthen
their desire to continue in the service of the Company, and will
prove attractive to promising new employees and will assist the
Company in attracting such employees.
As used in
this Plan and in connection with any Award, the terms set forth
below shall have the following meanings:
(a)
“Award” means the opportunity to earn cash
compensation under this Plan, subject to the achievement of one or
more Performance Goals with respect to a Performance Period and
such other terms and conditions as the Committee may impose in its
sole discretion.
(b)
“Board” means the Board of Directors of the
Company.
(c)
“Committee” has the meaning specified in Section
3(a).
(d)
“Company” has the meaning specified in the first
paragraph.
(e)
“Participant” means any employee of the Company
or its Subsidiaries who has been granted an Award.
(f)
“Performance Goal(s)” means one or more measures
determined with respect to one or more of the following metrics as
applied to the Company and its Subsidiaries as a whole or solely to
the Company or a Subsidiary or a division or other unit of the
Company or a Subsidiary: revenue; operating income; net
income; basic or diluted earnings per share; return on revenue;
return on assets; return on equity; return on total capital; or
total shareholder return.
(g) The
“Performance Period” for an Award means the
period of time for the measurement of the extent to which the
applicable Performance Goals are attained.
(h)
“Plan” means this LoJack Corporation 2009 Cash
Incentive Plan, as amended and in effect from time to
time.
(i)
“Subsidiary” means a corporation in which the
Company directly or indirectly owns 25% or more of the total
combined voting power or value of all classes of stock or, in the
case of an unincorporated entity, a 25% or more interest in the
capital and/or profits. A Subsidiary may be a U.S.
domestic or foreign entity.
(j)
“Termination of Employment” of a Participant
means the termination of the Participant’s employment with
the Company and the Subsidiaries.
(a) Unless
the Board provides otherwise, this Plan shall be administered by
the Compensation Committee of the Board (the
“Committee”). The Committee shall have full
and final authority, in its discretion but subject to the express
provisions of this Plan, to determine the eligibility for Awards
among all Company and Subsidiary employees, establish the terms and
conditions of Awards including, without limitation, Performance
Goals and the related Performance Period, determine the extent to
which Aw
